Proposed Virginia First-Time Homebuyer Grant

Overview How would it work? Who would qualify?Important Conditions Next Steps for Bill What this means for Virginia Homebuyers

A new bill making its way through the Virginia General Assembly could provide significant financial relief to first-time homebuyers. HB1598, also known as the First-Time Homebuyer Grant Program, was passed by the Virginia House of Delegates and is now awaiting further approval by the Senate of Virginia. If enacted, this program would offer grants of up to $10,000 to eligible first-time homebuyers to help offset the costs of purchasing a home.

How Would the Grant Work?

The program is designed to assist first-time homebuyers with their purchase expenses by awarding a state income tax credit equal to 5% of their homebuying costs, up to a maximum of $10,000. This means eligible homebuyers would apply to claim the credit after purchasing their home, and it would directly offset their Virginia state income tax liability. The grant will be awarded on a first-come, first-served basis through the Virginia Department of Housing and Community Development.

Who Would Qualify?

To be eligible for the grant, applicants must meet the following criteria:

Be a first-time homebuyer, meaning they have not owned a primary residence in the past three years.
Have an annual household income that does not exceed $100,000 or the median household income for their locality, based on U.S. Census Bureau data.

Important Conditions

While this grant provides valuable assistance, it comes with a key requirement: If the home is sold within three years of purchase, the grant must be repaid to the Commonwealth. However, this repayment requirement is waived if the home sale occurs due to a natural disaster or other event that renders the home uninhabitable.

Next Steps for the Bill

The bill has passed the Virginia House of Delegates and is now moving through the Senate of Virginia. If approved and signed into law, the program could soon become an important resource for first-time homebuyers looking to ease the financial burden of homeownership.

What This Means for Virginia Homebuyers

If you’re looking to buy your first home in Virginia, this grant could help you reach your goal of homeownership. And when paired with CapCenter’s ZERO Closing Cost mortgage, your savings could be even greater—leaving you with more money to invest in your new home.

Regardless of whether HB1598 passes, CapCenter’s team is here to help you maximize your savings when buying a home. We eliminate unnecessary fees, provide expert realty guidance, and offer some of the best mortgage rates available—ensuring you keep more money in your pocket.

‍Ready to take the next step? Reach out to CapCenter today and see how we can help you buy smarter, save more, and move into a home you love—without the extra costs.